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Reuters Plans to Cut 1,100 Jobs
Reuters Group PLC plans to cut 1,100 jobs, or about 6 percent of its work force, by the end of next year in an effort to boost profits.
The announcement came as Reuters reported a 20 percent decrease in its profits before taxes and other one-time items for the first six months of the year even as its revenues grew.
Reuters employed 17,265 people at the end of last year and said the job cuts will come by the end of 2002. "Where possible, these reductions will be taken through natural turnover," the company said.
In addition, the company said its electronic brokerage business, Instinet, will cut 240 jobs by the end of this year. Instinet had 2,021 employees in 2000.
No details were provided on where the cuts will be made.
Reuters will take a special charge of $36 million to help pay for the job cuts.
Reuters said its profit before taxes, amortization costs and writedowns or gains on asset sales fell to $322 million. Revenue grew to $2.75 billion. Underlying revenues, which exclude the effects of acquisitions, asset sales and currency movements, rose 8 percent.
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